Mass layoff in US-based medical coding firm in Kochi spark protests

Rejecting the management offer of compensation of three months’ salary, the employees demanded compensation of at least 10 months’ salary to cope with the sudden loss of employment.

A sudden mass layoff at US-based medical coding firm in Kochi on Friday has triggered widespread protests after the company abruptly announced the closure of its offices in Kochi and Kozhikode. The decision has left nearly 900 employees losing jobs without any prior notice, forcing the government to intervene. Employees in Kochi said that they were shocked to receive the termination letter when reported for duty in the morning. They alleged that the company officials asked them to surrender their identity cards, collect their relieving letters and leave the premises.Rejecting the management offer of compensation of three months’ salary, the employees demanded compensation of at least 10 months’ salary to cope with the sudden loss of employment.Financial constraintsThe company reportedly attributed the reason to shut down its Kerala operations to financial constraints. Disputing the claim, employees alleged that the company is simultaneously recruiting staff at its other centres, including Hyderabad.Uma Thomas, MLA who intervened in the matter told reporters that she had spoken to company representatives and expressed concern that the sudden terminations. The company officials have agreed to discuss the matter and provide compensation in accordance with the directions of the Labour officer, she said adding that the priority was to ensure that the employees remained in service.The State Labour secretary will arrive on July 6 to hold further discussions, MLA said.It was after the discussions the management agreed to temporarily suspend the termination and allowed employees to resume work as usual, with their salaries and other benefits until a mutually acceptable long-term solution is reached.The company and employee representatives also agreed that a final decision on the proposed closure of the Kerala offices and the future of the operations would be taken only after further rounds of negotiations.Published on July 3, 2026